SpiceJet in talks with US investor for stake sale

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Updated: 08/07/2008 | 11:17 PM IST

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Arijit Banerjee

Tuesday, July 08, 2008 (New Delhi)

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The SpiceJet stake sale deal seems to be getting spicier with billionaire US based investor Wilbur Ross confirming to NDTV that he is indeed in talks to buy a stake in the company.

The king of good times Vijay Mallya, the other prospective buyer, may need to match Wilbur Ross's offer to get back into the deal.

SpiceJet has been looking for an investor in the company for quite some time to raise about $100 million by issuing fresh equity.

The company’s promoters were in talks with Vijay Mallya who is looking to buy majority stake in the company but Wilbur Ross's interest in Spicejet can provide the promoters an easier way out of these troubled skies.

In an exclusive interview to NDTV, SpiceJet management confirmed that Rothschild is scouting for investors to invest in the airline.

“Our merchant bankers are in talks with PE and potential investors. We are waiting for merchant bankers to get back to management,” said Siddhanta Sharma, Executive Chairman, SpiceJet.

Sources tell NDTV that Vijay Mallya is not giving up yet and is expected to forward a formal proposal to the SpiceJet management possibly offering its promoters a complete buyout of their stake.

The low cost carrier’s management also doesn't seem too averse to giving over management control in the airline.

“We don’t have a situation where people own 70-80 per cent of the company. It is not about control,” said Sharma.

The SpiceJet board is likely to meet this week to take a call on the various offers its bankers are putting forward with a formal announcement on the likely investor coming anytime next week.